Canada Inflation Up 2.7% in April, Rises at Slowest Pace in Three Years

By Robb M. Stewart

OTTAWA--Canada's annual inflation rate declined to its slowest pace in three years last month as cooling food-price growth more than made up for higher costs at the pump.

The country's consumer price index in April rose 2.7% from a year earlier, Statistics Canada said on Tuesday. The result was in line with market expectations, according to economists at TD Securities, and comes after the index edged up 0.1 percentage point to 2.9% in March.

On a month-over-month basis, prices rose 0.5%, in line with the consensus forecast. On a seasonally adjusted basis, CPI advanced 0.2% from the previous month.

Meanwhile, the average of the Bank of Canada's preferred trimmed mean and weighted median measures for underlying inflation climbed 2.75% on-year in April, slowing from 3.05% the month before.

Write to Robb M. Stewart at robb.stewart@wsj.com